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Forums - Nintendo Discussion - Nintendo makes $6 from every Wii sold

TruckOSaurus said:
I stopped believing anything this article had to say after reading the Wii has been out three years now. I know we've passed the two years mark but when you round up two years and two weeks to three years, you can't be right on much else.

Since the Wii is nothing more than two Gamecubes duct taped together, they must have been counting the the life of the Gamecube as part of the Wii with an appropriate multiplier.



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It's highly unlikely that PS3 hardware is making a profit right now. When exchange rates were good, they were planning to break even towards the end of the fiscal year. We're not even there yet.



My Mario Kart Wii friend code: 2707-1866-0957

Currency messed 'em up right like Sony ?

They are a Japanese based company right ?

I've always thought a company should just change territory to the place which has the best currency , it's probably not that easy lol.




rajendra82 said:
TruckOSaurus said:
I stopped believing anything this article had to say after reading the Wii has been out three years now. I know we've passed the two years mark but when you round up two years and two weeks to three years, you can't be right on much else.

Since the Wii is nothing more than two Gamecubes duct taped together, they must have been counting the the life of the Gamecube as part of the Wii with an appropriate multiplier.

Now that I think about it, Gamecube sold for $99 towards the end of its life, and Nintendo was still profitable.  So a Wii at $250 should have $50 extra profit, unless they use the ultra expensive kind of duct tape. 



Million said:
Currency messed 'em up right like Sony ?

They are a Japanese based company right ?

I've always thought a company should just change territory to the place which has the best currency , it's probably not that easy lol.

Well a large enough company will seek to be headquartered where taxes are the lowest. Your manufacturer pretty much tells you the currency he wants to see from you. It has always been US$, but in the past few years, when the US$ lost attractiveness, more and more European companies have been "asked to pay" in Euros when dealing with Chinese companies.

 



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@Kaz that's a very weak statement , even if Sony were making profits of their PS3 it wouldn't neccaserily mean they were making a profit in their ent division.




drkohler said:
Million said:
Currency messed 'em up right like Sony ?

They are a Japanese based company right ?

I've always thought a company should just change territory to the place which has the best currency , it's probably not that easy lol.

Well a large enough company will seek to be headquartered where taxes are the lowest. Your manufacturer pretty much tells you the currency he wants to see from you. It has always been US$, but in the past few years, when the US$ lost attractiveness, more and more European companies have been "asked to pay" in Euros when dealing with Chinese companies.

 

 

Hmm interesting , this is something I've always struggled to understand , would you mind explaining further ?


Why would a manufacturer or anyone for that matter demand payment in currency , why do we hear on british TV about the value of oil in dollars . Can't I simply pay more of my own currency to compensate for it's weakness towards other currencies?




Million said:
@Kaz that's a very weak statement , even if Sony were making profits of their PS3 it wouldn't neccaserily mean they were making a profit in their ent division.

Since the PS3 is what has been eating all of their profits... I think it would.

Unless they magically started losing money on something else.



It was confirmed to me that Nintendo made $79 on every Wii sold, pure profit. (I am 100% sure of that figure).

I HIGHLY DOUBT that Nintendo has lost around $70 in profitability, even in our economy. That was since launch, and I'm guessing the parts got a little cheaper after 2 years (maybe even $5 cheaper, who knows).

If the Wii being reduced in profit is the case, how much is the PS3 losing now?! I'm not sure I want to know.



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Kasz216 said:
Million said:
@Kaz that's a very weak statement , even if Sony were making profits of their PS3 it wouldn't neccaserily mean they were making a profit in their ent division.

Since the PS3 is what has been eating all of their profits... I think it would.

Unless they magically started losing money on something else.

You didn't read my statment , you said A. If the PS3 isn't making a losss then B. Sony is making a profit and I say B doesn't neccaserily make A true. There are many factors which could hinder the entertainment divisions profitabiltiy for this particular quater.